Environmental Management Accounting — Purpose and Progress

The purpose of this paper is to present an empirical case for research in environmental management accounting and/or environmental cost accounting. The paper provides an analysis of the current status of environmental management and/or environmental cost accounting at the industry level. The author explores the extent of management research in the field of corporate sustainability management and environmental management accounting. The study employs a survey method for identifying factors to adopt environmental cost accounting and its guidelines within organizations in Korean manufacturing industry contexts. The paper uncovers those manufacturing industries' views on motivations and obstacles to adopt environmental cost accounting and its guidelines, and general perceptions on related issues. It is found that there is a lack of a systematically structured approach to implement environmental cost accounting internally in practice. The study also finds that some difficulties to adopt environmental cost accounting in practice are caused by the existing accounting and information system. The paper suggests where further contributions might be made by future research endeavours engaging with different industry sectors and country levels. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

The emergence of contemporary business environment and technologies, customer driven business perspective, and transparent and accountable business practices have led different stakeholders to demand information in relation to the management of the environment. Consequently, organizations tend to develop their strategies in line with achieving these financial and environmental performances. The apparel industry is one of the significant contributors in the Sri Lankan economy and it can be seen that Environmental Management Accounting (EMA) is often practiced in this industry. However, it is a matter of consideration for the real reason behind the adoption and implementation of Environmental Management Accounting Practices (EMAPs) in this industry. Accordingly, this study is focused on identifying the actual factors that have influenced a manufacturer in the apparel industry in Sri Lanka to adopt and implement EMAPs with the perspective of the New Institutional Sociology Theory. This study takes a case study approach. Therefore, one of the leading manufacturing companies in the apparel industry was selected as the case company. The primary data were collected through a semi-structured interview and questionnaire survey. The validity of findings was assessed through data triangulation. It was identified that the environmental cost accounting, environmentally induced capital expenditure and revenue are the mostly used EMAPs whereas the payback period method is often applied in the organization for investment appraisal activities. In terms of factors that have influenced to adopt and implement EMAPs through the Institutional Theoretical Perspective, it was found that coercive isomorphism was the most significant factor whereas the least influential factor was the normative isomorphism on the adoption and the implementation of the EMAPs in the organization. In terms of coercive isomorphism, the government regulations are the most influential force on this adoption and the implementation. Further, the study found some reasons behind the adoption of more Physical EMAPs (PEMAPs) than the Monetary EMAPs (MEMAPs) by the organization. The study contributes to minimize the gap by revealing the types of EMAPs that have been adopted and implemented and revealing the actual factors that have led to adopt and implement those practices in a manufacturer of the apparel industry.

Purpose: This study examines how Environmental Management Accounting practices are related to waste management practices and how the organization in the case study is influenced in adopting the waste management practices Research methodology: The case study method was used in examining the applicability of Environmental Management Accounting to waste management in one large manufacturing company. Interviews, observations and archival documents were used as data collection methods. Results: The study observed that the company had reinvigorated environmental management and waste management practices due to the influence of the major stakeholders. These motivations can be categorized into three main pillars including coercive, mimetic, and normative isomorphisms. Limitations: As the research is directed towards the selection of in-depth inquiry of specific settings infused with culture, values, beliefs, stories, language, perception, politics and ideology, it might cause to diminish the researcher's analytical objectivity and independence of the research. Contribution: Policies, practices and motivations promote the future development of environmental management accounting and waste management practices in the Sri Lankan context.

Environmental management accounting (EMA) practices guide a firm’s response to perceived environmental uncertainty (EU) and various institutional pressures (IP). Drawing upon institutional theory, this study explores the relative effects of institutional pressures and environmental uncertainty on the implementation of EMA, an environmental strategy (ES), and the resulting environmental performance (EP) of firms under the influence of top-management support (TMS) and perceived benefits (PB). Based on data collected from 243 firms operating in Suzhou, one of the busiest business hubs in China, this research used the structural equation modeling (SEM) technique. Findings reveal that environmental uncertainty exerts a stronger influence on the adoption of EMA practices than institutional pressures; however, the choice of a firm’s environmental strategy is more influenced by institutional pressures. Likewise, the serial-mediation effect of environmental strategy and EMA practices is observed to be the strongest in the case of coercive pressures, with some notable moderation effect for perceived benefits and top-management support. The study concludes with theoretical and managerial implications.

The disclosure of environmental management accounting (EMA) practices determine the eco-friendly business activities and helps to measure costs and benefits of environmental preservation of any organizations. The study aims to identify the disclosures status of EMA practices in the in PCBs in Bangladesh. The study also aims to examine the factors (total assets, total investment, profit after tax, ROA, ROE, and EPS) influencing disclosure of the adoption of environmental management accounting in listed PCBs in Bangladesh. This study applied quantitative research method to collect and analyze data. EMA disclosure data is collected from the annual reports of the banks and panel data is used to data analysis of the factors. The collected data is analyzed using descriptive statistics, inferential statistics, correlation, and multiple linear regression analysis. Six hypotheses are developed and tested at 5% significance level. The study concludes that the private banks disclose 71.15% information of EMA practices.

Environmental management accounting in the Middle East and North Africa region: Significance of resource slack and coercive isomorphism

This study investigates how South African hotels incorporate smart technologies into Environmental Management Accounting (EMA) practices to enhance environmental accountability and sustainable management. Owing to the high consumption of energy, water, and other natural resources, the hospitality industry is under increasing pressure to reduce its environmental footprints. The EMA offers a mechanism for hotels to embed sustainability into their decision making. However, the integration of EMA with digital technologies remains underexplored in South Africa, an emerging economy. A qualitative multiple-case study design was employed, involving 27 semi-structured interviews with key hotel stakeholders across 3–5-star hotels in the KwaZulu-Natal and Gauteng provinces. Thematic analysis guided the identification of patterns and themes. The findings revealed that digital tools, such as Internet of Things (IoT) sensors, building management systems, and real-time dashboards, are increasingly being used to monitor environmental performance. When integrated with operational and financial workflows, these tools enhance decision making, reduce costs, and promote a sustainable culture. However, limited interoperability with legacy systems, high implementation costs, and insufficient technical expertise have been identified as the key barriers. Smart technologies have the potential to transform the EMA in the hotel sector, but their success hinges on organisational alignment, skill development, and supportive governance structures.

The theory and practice of environmental management accounting (EMA) have emerged in recent decades as a response to the growth of environmental problems. EMA can be defined as the identification, collection, estimation, analysis, internal reporting, and use of materials and information relating to energy flow and environmental and other costs for both conventional and environmental decisionmaking within an organization. It is now a widely used tool in balancing the interaction between the economic, social and technological factors in the development process to achieve the conditions for sustainable environment. The rapid growth in the number of companies that are awarded ISO 14001 certificates has enhanced the development of EMA all over the world. Many governments are involved in promoting EMA. In China, the government and companies are doing their best to keep pace with the global trend of environmental protection. The main problems of EMA relate to the specification of environmental accounting information, the allocation of environmental costs, legislation issues and the lack of environmental accounting standards. Among all the available policy instruments governments could use, the paper argues that regulatory or market-sensitive instruments would be more suitable for China. It is also possible for the Chinese government to direct companies in establishing environmental reporting and environmental auditing systems.

Most companies make extensive use of environmental sustainability as they receive pressure to operate in an environmentally sustainable manner. Companies are struggling to implement environmental management accounting practices in their operations. Accordingly, research on environmental sustainability difficulties in the context of environmental management accounting in food and beverage manufacturing enterprises is limited. The paper investigates how the barriers to environmental sustainability influence the implementation of environmental management accounting (EMA) in the food and beverage manufacturing firms in Durban, South Africa. A quantitative research approach was applied, using convenience sampling because the data was collected during the strict regulations of the Covid-19 period. The Likert questionnaire (five-point scale) collected quantitative data and it was analyzed using SPSS, performing Pearson's correlation research and regression analysis. The Pearson's correlation coefficient findings show a statistically significant association between environmental sustainability bottlenecks and environmental management accounting in food and beverage manufacturing enterprises at (r = .250, p < 0.0005). As barriers to sustainability decrease, the implementation of environmental management accounting practices will be easier for these firms. The results of regression analysis, show the independent variable, barriers to sustainability, as a major predictor of environmental management accounting, B= 0.442, p< 0.05. It can be suggested that the SA government make the use of EMA practices mandatory for companies that have a negative impact on the environment.

Institutional pressures in the environmental management accounting process through coercive pressure, normal pressure and mimetic pressure that could foster practices and significantly heightens the likelihood of achieving firms' environmental performance. Although a substantial body of literature has outlined the theoretical mechanisms through which institutional pressures in the environmental management accounting process might boost firms' environmental performance, the generally inconsistent and unclear findings of empirical studies have kept researchers interested in exploring this topic further. The present study has investigated the simultaneous impact of coercive pressure, normal pressure, and mimetic pressure of institutional pressures on firms' environmental performance. Based on the institutional theory and the literature review, this study has examined the direct effect of institutional pressures on environmental management accounting, as well as the direct relationship between environmental management accounting and environmental performance. In addition, environmental management accounting has been determined to be mediators in linking the coercive pressure, normal pressure and mimetic pressure of institutional pressures and their effects on firms' environmental performance. JEL Codes: M40, M41, Q56. Keywords: Institutional pressures; environmental management accounting; environmental performance.

Environmental management accounting applications and eco-efficiency: case studies from Japan

The impact of tourism industry activities can cause various environmental problems that are detrimental to various parties. This is a social burden, which must be taken seriously. Environmental Management Accounting is a concept that helps companies contain business impacts in the form of monetary units. The application of Environmental Management Accounting helps companies deal with environmental problems by recording all production activities to be reported in the company's environmental cost report. Although until now there is no standard that requires full environmental accounting disclosure. The research methodology uses case studies. This research aims to develop a model in the form of an accounting policy that contains the concept; emphasize relationship patterns and clarify environmental management accounting practices in the hotel industry. Data analysis was carried out using the Miles and Huberman model. The research results show that environmental management accounting is still considered necessary because it does not affect the business climate. In addition, the relationship between a company's environmental performance presented in the company's accountability report and its financial or economic performance is still doubtful.

The objective of this study is to examine the problem of lack of awareness by organizations of the importance of environmental management accounting and its role in determining environmental costs, improving environmental performance and the lack of interest in the environmental management system which is considered environmental management accounting one of its tools, in the words Others, the actual impact of the EMS is somewhat low. Defining the concept of environmental management accounting in general, and environmental costs represented by the costs of environmental protection the costs of treatment emissions treatment and wastewater treatment using the environmental management accounting methodology. The need for environmental management accounting emerged due to the failure of traditional administrative-accounting in accounting. On environmental costs, which are allocated to calculating indirect industrial expenses instead of allocating them directly to the operations, products or activities that generated those costs one of the difficulties facing the application of environmental management accounting is the lack of a unified definition of environmental costs, each company classifies environmental costs according to their circumstances.

Small and Medium Enterprises (SMEs) play a significant role in Indonesian business growth. Therefore, the objective of the present study is to investigate the association of antecedents of environmental management accounting and environmental performance in Indonesian SMEs. In doing so, the current study seeks to identify the internal and external influencing factors for firms in adopting EMA and its subsequent impact on SMEs environmental performance. the outcomes of the PLS-SEM confirm that Benefit Expectation has significantly and positively impacted on Environmental Management Accounting. The results of PLS-SEM also confirm that Regulatory Pressure has a positive and significant impact on Environmental Management Accounting. Finally, the results of partial least square modelling confirm that Environmental Management Accounting also has a positive and significant impact on Environmental Performance.Keywords: Environmental management accounting, environmental performance, SMEs, Indonesia.JEL Classifications: Q55, Q50DOI: https://doi.org/10.32479/ijeep.8366

Purpose: This article examines the relationship between environmental management accounting (EMA), environmental leadership (EL), and firm financial performance in Indonesian corporations. Method: This study uses a Moderated Regression Analysis (MRA) to examine the moderating role of EL. Using secondary data, the research analyses 52 observations from 45 companies listed in the LQ45 Index on the Indonesia Stock Exchange. The unit of analysis is the firm level, with EL measured as the proportion of female commissioners, EMA proxied by the ESG score, and firm financial performance represented by ROA. Control variables include leverage, operating profit, and sales growth to ensure robust results. Findings: The study finds that EMA does have an impact on financial performance, while EL has a negative direction and does not give an impact on strengthening the relationship between EMA and financial performance. The research suggests the importance of implementing EMA practices to enhance company performance. The study also highlights the need for future research to focus on industries closely related to the environment, such as mining companies. Novelty: This study introduces the proportion of female commissioners on the board as a novel proxy for EL within the framework of Indonesian corporations. Unlike prior research focusing solely on EL in generic terms, this approach leverages gender diversity to explore its moderating role between EMA and firm financial performance. By doing so, it provides unique insights into how gender-inclusive leadership can influence environmental practices and corporate outcomes, where female representation on boards is still emerging.